CII: Impact of sustained structural reforms felt

“Businesses across several key sectors are experiencing firm growth in sales and orders, indicating better capacity utilisation and higher investment expectations,” he added. As per CII, strong rural consumption is reflected in sectors like consumer non-durables, two-wheelers, tractors. 

Prudent macroeconomic management encouraged growth and investments for capacity expansion are being planned as demand conditions recover. 

The Centre has avoided slippage in the fiscal deficit despite the rise in oil prices. Inflation too has remained under control to the extent possible even as cost of oil is going up. 

The capital goods sector is showing steady improvement and order books are filling up. Exports, too, are poised to grow at a faster pace in the current fiscal year, which started on a good note, noted CII. 

“The feedback from businesses is that the rebound in the economy is now firmly entrenched and the positive impact of the actions taken by the government, including major structural reforms, are being felt on the ground,” Mittal added. Eight key areas were highlighted where reform measures have unlocked growth forces. 

Introduction of GST has been relatively smooth due to quick response in addressing roadblocks. Businesses have now settled down after the initial disruptions. With the elimination of interstate barriers and implementation of e-way bill system, transport and logistics have become more competitive and less expensive. 

The impact of this seminal tax is now being felt in formalisation of enterprises, wider tax base and higher tax revenues, said CII. 

The strong emphasis on ease of doing business, where India has improved 42 ranks has now impact on the ground. Starting a business, paying taxes, trade facilitation and obtaining permits are being emphatically taken up. 

CII highlighted that with active participation of state governments, a facilitative investment climate is evolving. 

Industry believes that the Insolvency and Bankruptcy Code will transform the business environment and make it easier for failing enterprises to exit unviable businesses. It is also helping address the non-performing assets problem, reducing job losses, and will have positive long-term ramifications, stated CII.